XML 44 R24.htm IDEA: XBRL DOCUMENT v3.5.0.2
Correction of Immaterial Error
 12 Months Ended
Aug. 31, 2016
Accounting Changes and Error Corrections [Abstract]  
Correction of Immaterial Error
Correction of Immaterial Errors

Lease Accounting:

We lease rail cars, equipment, vehicles and other assets under noncancelable lease agreements for use in our agricultural and transportation operations in both our Energy and Ag segments. During the fourth quarter of fiscal 2015, we determined that we had historically applied the accounting principles of ASC Topic 840, Leases, incorrectly by accounting for our lease arrangements as operating leases. We subsequently determined that certain of our leases met, at lease inception, one or more of the ASC 840-10-25-1 criteria that require a lease to be classified and accounted for as a capital lease. Prior period amounts in the financial statements, notes thereto and related disclosures were revised at that time.

Statement of Cash Flows Presentation:

During the fourth quarter of fiscal 2015, we determined that our historical presentation of cash flows related to the acquisition of property, plant and equipment and expenditures for major repairs was incorrect. Amounts presented as cash outflows in prior periods included acquisitions of assets for which cash had not yet been paid, resulting in misstatements of both investing and operating cash flows. Prior period amounts in the financial statements, notes thereto and related disclosures were corrected at that time.

Materiality Assessment:

We assessed the materiality of the misstatements described above on prior period financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality, codified in ASC 250 ("ASC 250"), Presentation of Financial Statements, and concluded these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), our consolidated financial statements as of August 31, 2014 and for the year ended August 31, 2014, which are presented herein, were revised. The following are selected line items from our consolidated financial statements illustrating the effects of these revisions:

 
CONSOLIDATED STATEMENT OF OPERATIONS
 
For the Year Ended August 31, 2014
 
As Previously Reported
 
Revision
 
As Revised
 
(Dollars in thousands)
Cost of goods sold
$
41,016,798

 
$
(5,311
)
 
$
41,011,487

Gross profit
1,647,235

 
5,311

 
1,652,546

Operating earnings
1,044,637

 
5,311

 
1,049,948

Interest expense, net
134,942

 
5,311

 
140,253

Income before income taxes
1,131,303

 
—

 
1,131,303


 
CONSOLIDATED STATEMENT OF CASH FLOWS
 
For the Year Ended August 31, 2014
 
As Previously Reported
 
Revision
 
As Revised
 
(Dollars in thousands)
Cash flows from operating activities:
 
 
 
 
 
Depreciation and amortization
$
267,167

 
$
39,080

 
$
306,247

Changes in operating assets and liabilities, excluding the effects of acquisitions:
 
 
 
 
 
Accounts payable and accrued expenses
(164,616
)
 
(25,187
)
 
(189,803
)
Net cash provided by (used in) operating activities
1,427,351

 
13,893

 
1,441,244

Cash flows from investing activities:
 
 
 
 
 
Acquisition of property, plant and equipment
(943,888
)
 
24,812

 
(919,076
)
Expenditures for major repairs
(3,305
)
 
375

 
(2,930
)
Net cash provided by (used in) investing activities
(1,341,582
)
 
25,187

 
(1,316,395
)
Cash flows from financing activities:
 
 
 
 
 
Principal payments on capital lease obligations
—

 
(39,871
)
 
(39,871
)
Other financing activities, net
(447
)
 
791

 
344

Net cash provided by (used in) financing activities
240,530

 
(39,080
)
 
201,450